Labor costs in production can be:

A) Direct or indirect.
B) Indirect or sunk.
C) Direct or payroll.
D) Indirect or payroll.
E) Direct or sunk.

Labor Costs

The total sum of all wages, benefits, and taxes that a business must pay for its employees, often a significant component of production expenses.

Direct Labor

The labor cost directly attributable to the production of goods or services, distinguishable from indirect labor costs like maintenance.

Indirect Labor

Labor costs that are not directly tied to the production of goods or the performance of services, such as the salary of a factory supervisor.